Bookkeeping And Financial Management: How To Save Time And Money
Keeping money in check can itself take a lot of money. Bookkeeping and financial management are vital to keeping your business running successfully, but they can also cost you a lot of time and money. Let’s see how can you save both.
Automate the financial management
Automation is the key to saving time in this world. With automated accounting software like Quickbooks, Xero, or Microsoft Dynamics that help in recording, maintaining, scheduling, and reviewing accounting data. Automated bookkeeping nowadays has improved with machine learning and can control most complex business financial data. The automation of bookkeeping and financial management will let you review the financial data on the go, if you use cloud-based software. Also, with software, there is usually a minimal chance of error.
There is just one con though, you need to learn it and teach it to anyone involved. It takes time, but they are usually user-friendly. Once you and your team understands, it becomes easier for everyone involved in financial management to maintain and review the data. These categorize your transactions, prepare the vital financial statements, reconcile your business bank accounts, and handle all the day to day bills and invoices. They can help you in financial forecasting, which can save you from major disasters.
If you outsource your financial management this software lets you track their progress in real-time and communicate your concerns on time. Good accounting firms are up to date with trends and use this software. They even encourage you to use these as well.
Since it is important to keep the tax documents for a minimum of six years, which takes a lot of space, use secure cloud storage that is constantly backed up. Still, do not forget to keep an offline backup of accounting information on either offsite storage and/or in a flash drive. You may also use a dedicated hard drive. This will not only free up space but also cost you less unless you use a very expensive cloud storage service. But this cloud storage can be multi-purpose and used for all kinds of documentation, so no loss there.
CPA or Bookkeeper?
You can try bookkeeping yourself or ask a family member. It will work for a small company and save you money. But as it grows, you don’t want to be flagged for an audit, now, do you?
First off, know the difference. A bookkeeper simply records the finances. An accountant also gives a deep analysis and a CPA is a state-licensed accountant. You want to save money? Go with a bookkeeper or an accountant, according to your business needs. If your business is growing, you would need to have an in-depth analysis of your finances instead of just record keeping. A cost and time-saving way is to outsource a CPAfrom a good accounting firm. CPAs give the best services, but they are very very expensive. And Outsourcing a CPA not only gives you the best services from the most experienced CPAs, but also saves you money as the financial firm gives great packages according to your businesses. They can control your finances with best-practice knowledge.
It also saves you time that you would take on the hiring process, with an advertisement for a job, calling the candidates and then interviewing them.
Business Factoring Loans
If you think you put in a lot of money while you track down your customers, then you should think about a business factoring loan. When you sell your customer invoices to a financial company, it will give 75% of the total straight away. This gives you access to capital very quickly. Finally, when you are paid by your customer you get paid the rest of the money, minus, of course, the fees of the business factoring that the company takes.
Automation in Payroll
Sometimes it is available in great financial management software, but some do not offer this service. An automated payroll system can save lots of time when you don’t have to go through each employee to approve their pay. These systems carry out all the printing, signing, dating and sending the checks. All you do is approve with a single tap or click.
If you get great financial management software, you get an all-in-one option, where you also save a lot of money. So, be very vigilant while selecting one.
As a business owner, you have lots to do; saving your time and money with automation, going green or outsourcing the financial management, can give you all the time you need to focus on running your business. Now that you have a deeper understanding of how to save time and money through bookkeeping and financial management, you can rest assured that you know how to run a secure business.
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